Currency Exchange International Announces Financial Results for the Three-Month Period and Financial Year Ended October 31, 2...
January 28 2020 - 5:41PM
Currency Exchange International, Corp. (the “Company”)
(TSX:CXI; OTCBB:CURN), is pleased to announce its
financial results and present management's discussion and analysis
("
MD&A") for the three-month period and year
ended October 31, 2019 (all figures are in U.S. dollars except
where otherwise indicated). The complete financial statements and
MD&A can be found on the Company's SEDAR profile at
www.sedar.com.
Randolph Pinna, CEO of the Company stated, “2019
was an eventful year for CXI. We succeeded in growing our core
foreign currency banknote business in both Canada and the U.S.,
continued to diversify our revenue base by expanding our capability
to offer global foreign currency payments, and acquired a banknote
company based in Longview, Texas. We continued to face challenges
in our retail business and expense growth for most of the year
exceeded revenue growth, but by the final quarter we generated
growth in net operating income compared to the fourth quarter of
2018. CXI is very well positioned in the market and our strong
capital base gives us the ability to capitalize on potential growth
opportunities in 2020.”
Corporate and Operational Highlights for
2019:
- Banknote business segment: the
wholesale banknote business continued to perform strongly,
achieving 12% year-over-year growth. The Company continued to
expand its customer base within new market segments in both Canada
and the U.S. However, retail revenues declined 5%
year-over-year.
- Foreign Currency International Payments segment: the Company
continued to diversify its revenue base with payments revenues
growing 56% year-over year, increasing from 4.3% to 6.3% of
revenue.
- Total transaction volume in payments and banknotes increased by
8%, driven largely by new, larger clients being onboarded.
- On September 6th, the Company
acquired eZforex.com, a successful money service business located
in Longview, Texas. It was a longtime client of the Company with a
client base consisting primarily of financial institutions similar
to those of the Company, facilitating an efficient integration. The
acquisition contributed positively to EBITDA in the fourth
quarter.
- Significant investment has been made in strengthening human
capital within the Sales, Compliance, Risk Management teams as well
as the Board of Directors.
- The Company continues to be
strongly capitalized with complementary available Lines of Credit,
providing ample flexibility and nimbleness to fund organic growth
and to consider and capitalize upon accretive M&A opportunities
in 2020.
Financial Highlights for the Three-month
Period Ended October 31, 2019 compared to the Three-month Period
Ended October 31, 2018:
- During the three-month period ended
October 31, 2019, transactional activity between the Company and
its customers increased 8% to 351,000 transactions from 320,000 for
the three-month period ended October 31, 2018;
- Revenues increased 12% or $1.2 million to $11.5 million for the
three-month period ended October 31, 2019;
- Net operating income increased to $1.9 million from $1.7
million for the three-month period ended October 31, 2019;
and
- Net income decreased to $.8 million from $1 million for the
three-month period ended October 31, 2019.
Financial Highlights for the financial
Year Ended October 31, 2019 compared to the Year Ended October 31,
2018:
- During the financial year ended
October 31, 2019, transactional activity between the Company and
its customers increased 8% to 1,210,000 transactions from 1,118,000
for the year ended October 31, 2018. Since October 31, 2018, the
Company has added 318 new customer relationships comprising 1,759
locations, of which 318 relationships representing 1,688
transacting locations were added in the United States and 30
relationships representing 71 locations were added in
Canada;
- Revenues increased 7% or $2.7
million to $41.8 million for the year ended October 31,
2019;
- Net operating income decreased to
$6.2 million from $8.1 million for the year ended October 31,
2019;
- Net income decreased to $2.9
million from $4.2 million for the year ended October 31, 2019;
and
- The decrease in profitability for
the year is attributable primarily to lower revenue from the retail
stores and increased expenses related to the strengthening of our
infrastructure to support continued growth.
Seasonality is reflected in the timing of when
foreign currencies are in greater or lower demand. In a normal
operating year there is seasonality to the Company's operations
with higher revenues generated from March until September and lower
revenues from October to February. This coincides with peak tourism
seasons in North America when there are generally more travelers
entering and leaving the United States and Canada.
Selected Financial
Data
Three-months ending |
Revenue |
|
Net operating income |
|
Net income (loss) |
Total assets |
|
Total equity |
|
Earnings (loss) per share (diluted) |
|
|
$ |
|
$ |
|
$ |
$ |
|
$ |
|
$ |
|
10/31/2019 |
11,469,079 |
|
1,863,442 |
|
769,393 |
|
82,729,714 |
|
66,329,035 |
|
0.13 |
|
7/31/2019 |
12,402,484 |
|
2,935,899 |
|
1,820,768 |
|
81,719,233 |
|
65,447,949 |
|
0.28 |
|
4/30/2019 |
9,460,809 |
|
1,081,292 |
|
507,370 |
|
82,267,884 |
|
63,022,825 |
|
0.08 |
|
1/31/2019 |
8,451,671 |
|
271,410 |
|
(172,811) |
|
82,045,951 |
|
62,678,990 |
|
(0.03) |
|
10/31/2018 |
10,270,234 |
|
1,724,576 |
|
995,967 |
|
73,267,274 |
|
62,721,937 |
|
0.17 |
|
7/31/2018 |
11,537,280 |
|
3,533,642 |
|
2,407,522 |
|
86,860,274 |
|
61,629,104 |
|
0.37 |
|
4/30/2018 |
8,887,772 |
|
1,115,289 |
|
507,606 |
|
84,714,970 |
|
57,789,679 |
|
0.08 |
|
1/31/2018 |
8,402,855 |
|
1,764,296 |
|
316,148 |
|
79,794,495 |
|
57,809,076 |
|
0.05 |
|
Conference Call
The Company plans to host a conference call on
January 29, 2020 at 8:30 AM (EST). To
participate in or listen to the call, please dial the appropriate
number:
- Toll Free: 1 (855) 336-7594
- Conference ID number: 6676637
About Currency Exchange International,
Corp.
The Company is in the business of providing a
range of foreign exchange technology and processing services in
North America. Primary products and services include the exchange
of foreign currencies, wire transfer payments, Global EFTs,
purchase and sale of foreign bank drafts and international
travelers’ cheques, and foreign cheque clearing. Related services
include the licensing of proprietary FX software applications
delivered on its web-based interface, www.ceifx.com (“CEIFX”), and
licensing retail foreign currency operations to select companies in
agreed locations.
The Company’s wholly-owned Canadian subsidiary,
Exchange Bank of Canada, based in Toronto, Canada, provides foreign
exchange and international payment services to financial
institutions and select corporate clients in Canada through the use
of its proprietary software – www.ebcfx.com.
Contact InformationFor further information
please contact: Bill MitoulasInvestor Relations(416) 479-9547Email:
bill.mitoulas@ceifx.comWebsite: www.ceifx.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This press release includes forward-looking
information within the meaning of applicable securities laws. This
forward-looking information includes, or may be based upon,
estimates, forecasts and statements as to management’s expectations
with respect to, among other things, demand and market outlook for
wholesale and retail foreign currency exchange products and
services, proposed entry into the Canadian financial services
industry, future growth, the timing and scale of future business
plans, results of operations, performance, and business prospects
and opportunities. Forward-looking statements are identified by the
use of terms and phrases such as “anticipate”, “believe”, “could”,
“estimate”, “expect”, “intend”, “may”, “plan”, “predict”,
“preliminary”, “project”, “will”, “would”, and similar terms and
phrases, including references to assumptions.
Forward-looking information is based on the
opinions and estimates of management at the date such information
is provided, and on information available to management at such
time. Forward-looking information involves significant risks,
uncertainties and assumptions that could cause the Company’s actual
results, performance or achievements to differ materially from the
results discussed or implied in such forward-looking information.
Actual results may differ materially from results indicated in
forward-looking information due to a number of factors including,
without limitation, the competitive nature of the foreign exchange
industry, currency exchange risks, the need for the Company to
manage its planned growth, the effects of product development and
the need for continued technological change, protection of the
Company’s proprietary rights, the effect of government regulation
and compliance on the Company and the industry in which it
operates, network security risks, the ability of the Company to
maintain properly working systems, theft and risk of physical harm
to personnel, reliance on key management personnel, global economic
deterioration negatively impacting tourism, volatile securities
markets impacting security pricing in a manner unrelated to
operating performance and impeding access to capital or increasing
the cost of capital as well as the factors identified throughout
this press release and in the section entitled “Risks and
Uncertainties” of the Company’s Management’s Discussion and
Analysis for Year Ended October 31, 2019. The forward-looking
information contained in this press release represents management’s
expectations as of the date hereof (or as of the date such
information is otherwise stated to be presented), and is subject to
change after such date. The Company disclaims any intention or
obligation to update or revise any forward-looking information
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws.
The Toronto Stock Exchange does not accept
responsibility for the adequacy or accuracy of this press release.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained in
this press release.
Currency Exchange (TSX:CXI)
Historical Stock Chart
From Jan 2025 to Feb 2025
Currency Exchange (TSX:CXI)
Historical Stock Chart
From Feb 2024 to Feb 2025